Put simply, an Order is an instruction you give to trade in your Skilling account. It can be as straightforward as ‘buy’ or ‘sell’. But as you’ll see there are a range of different orders you can use to maximise your potential profits and manage your risks.
What are the different order types?
This one’s easy. A Market Order is simply an instruction to buy or sell at the current market price.
You can place a Market Order from your Skilling account by clicking either the Buy button or the Sell button. (Told you it was easy!)
A Limit Order is an instruction to buy or sell at a specific price or better.
Let’s say you’re interested in taking a long position in Company X but only if the share price is at EUR 100 or lower. In that case, you can set a Buy Limit order at EUR 100. This is effectively an instruction to ‘buy Company X – but only when its share price is at EUR 100 or lower’.
You can also set a Sell Limit for when you’re on the other side of a trade. This is effectively an order to ‘sell Company X – but only when its share price is at EUR 110 (for example) or higher’
Limit Orders can be really useful when markets are volatile and prices are jumping all over the place. To make sure you get the price you want, it’s best to use a Limit Order rather than just clicking Buy or Sell, as prices can change in a fraction of a second.
Stop Loss Orders
If you take a ‘buy’ position in Company X and the share price drops you are currently making a loss.
This could happen while you’re in a meeting or playing golf, so you could be racking up losses without even realising it. (Luckily, we have a mobile trading app that enables you to place and close trades from the golf course or the meeting room).
That’s where a Stop Loss order comes in. A Stop Loss order limits the damage. In effect, it’s an instruction that says, ‘get me out if the price hits X’. Setting a Stop Loss can be worth it. Not only does it save you from having to check the markets 24/5, it’s also an essential tool to protect you from losses and it can be changed at any time. Finally, there is another type of Stop Loss Order – this is known as a Trailing Stop Loss. This allows you to trail your stop as the market moves. So, for example, if you have a position that is already 50% of the way to its profit target, then you can set your stop to trail that move and lock in the 50%. Very helpful if you are trading over the medium or long term. All of these can be seen when you open a trade ticket on the Skilling platform.
Take Profit Orders
A Take Profit Order does exactly what it says. It allows you to ‘take the profit’ from a winning trade at a specific price set by you. You’re effectively saying, ‘if share price hits X, get me out and take the profit’.
Just like a Stop Loss Order, it saves you the hassle of having to check the markets all the time. It also means you don’t miss out on any profits – especially useful when markets are volatile.
All the orders placed in the platform remains in effect until executed or cancelled manually by the client.
So, there we have it – a list of all the main order groups on the Skilling platform. If you are about to place your first trade and are still unsure, feel free to contact a member of our team who can assist you with everything you need to start trading!